The first International Microgravity Laboratory (IML-1), scheduled for spaceflight in early 1992 includes a crystal-growth-from-solution experiment which is equipped with an array of optical diagnostics instrumentation which includes transmission and reflection holography, tomography, schlieren, and particle image displacement velocimetry. During the course of preparation for this spaceflight experiment we have performed both experimentation and analysis for each of these diagnostics. In this paper we describe the work performed in the development of holographic particle image displacement velocimetry for microgravity application which will be employed primarily to observe and quantify minute convective currents in the Spacelab environment and also to measure the value of g. Additionally, the experiment offers a unique opportunity to examine physical phenomena which are normally negligible and not observable. A preliminary analysis of the motion of particles in fluid was performed and supporting experiments were carried out. The results of the analysis and the experiments are reported.